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Roadmap to the Texas Media Industries

Roadmap to the

Roadmap to the

Texas Media Industries

The Passage of the

2025 Film Incentive and Beyond

aerial photography of buildings during daytime

Photo by Erin Hervey on Unsplash

Photo by Erin Hervey on Unsplash

It’s an exciting time for the Texas media industries. On September 1, 2025, SB22 – an act designed to provide greater financial assistance and stability for film, television, commercials, and digital interactive media – went into effect. With $1.5 billion in total directed toward supporting moving image production over a ten-year time span ($300 million per biennium), SB22 represents the most significant commitment by the state yet to grow its international media presence and local infrastructure. As much as SB22 was designed to boost tourism and fuel business across the state, it also sought to center both more and different types of depictions of Texas onscreen.

As speculation ramps up regarding SB22’s potentially wide-ranging impact on businesses, workers, and content, the time seems right to pause and assess the Texas media industries’ past, present, and future. This report offers comprehensive coverage of the new legislation as well as an expansive collection of articles on Texas media. Through this, we aim to provide readers with a roadmap for understanding what may be a transformative time for the Texas media industries. Our team of researchers, including more than a dozen faculty members and graduate students from the Radio-Television-Film Department at The University of Texas at Austin (and beyond!), are thrilled to present you with this in-depth report that represents the culmination of over a year of research.

SB22: Legislation &

Prospective Outcomes

A chart shows Texas has an annual allocation of $150 million. New Mexico is $130 million, Louisiana is $125 million, Oklahoma is $30 million, California is $750 million, and New York is $800 million.

Increased Allocation

The increase in Texas’ annual allocation cap to $300 million per biennium (averaging $150 million per year) brings Texas ahead of its regional neighbors.

Chart showing Commercials and Other Media $100 thousand to $1 million qualify for 5% rate and spend above $1 million qualifies for 10%. For reality television, spend between $250,000 and $1,000,000 qualifies for 5% and above $1,000,000 is 10%. Digital Interactive, or video games, has three rates. $100,000 to $1,000,000, is 5%, $1 million to $1.5 million is 10%, and above $1.5 million is 25%. Feature films, tv (non-reality), and visual effects also has 3 tiers. $250,000 to $1,000,000 is 5%, $1 million to $1.5 million is 10%, and above $1.5 million is 25%.

Increased Incentive Rate

SB22 increased the base incentive for budgets over $1.5 million in film, television, and video games to 25% (up 5%). Additional uplifts for specific criteria (see page 21) create an effective incentive rate of 31% (up 8.5%). The incentive rate applies to qualified Texas expenses.

Breakdown of stackable uplifts. 2.5% for higher education partnership/workforce development. 2.5% for historic site, 2.5% for faith based content, 2.5% for employing Texas veterans, 1% for postproduction, 2.5% for rural filming, 2.5% for Texas Heritage

Changes to Incentive Rate Uplifts

Texas’ “effective incentive rate” rose to a maximum of 31% from 22.5%. Projects qualifying for a base rate of 25% can stack up to 6% in uplifts. Lower-budgeted projects at different incentive rates can also stack multiple uplifts. These uplifts encourage shooting in certain Texas locations, producing faith-based and family values media, and growing jobs for students, early career professionals, and veterans.

Reduced Residency Requirements

SB22 reduced the Texas residency requirement to 35% for 2025 and 2026. This followed an earlier decrease to 55% in 2023 and 2024. As SB22 encourages increased crew depth with their incentive uplifts, residency requirements are set to rise every two years.

Graph showing spikes in grant awards every two years following the Texas biennium budget. This corresponds to peaks and valleys in grant awards rather than spending being sustained across the two-year period.

Increased Stability & Longevity

SB22 extends film incentives for a ten-year span and establishes the Texas Treasury Safekeeping Trust Company. These measures ensure stable funding through a longer period rather than relying on the traditional Texas appropriations process. This reassures investors and producers working on longer-term projects.

Photo by Chris Murray on Unsplash

Photo by Chris Murray on Unsplash

TMIIIP Review Process

Continuing prior TMIIIP practices, SB22 includes a review process, during which the Texas Film Commission ensures the project qualifies. This legislative session included robust discussion on the rigor of this process.

From Idea to Implementation:

SB22 and the Road to the Capitol

September 10, 2024

Lieutenant Governor Dan Patrick issues interim charge for the Senate Finance Committee to review TMIIIP.

October 9, 2024

Special hearing of the Senate Finance Committee, with witnesses testifying on behalf of TMIIIP including writer and director Taylor Sheridan, actor Dennis Quaid, and businessman Ross Perot Jr.

January 29, 2025

Lt. Governor announces his top 25 bill priorities for the legislative session. Senate Bill 22 is titled Establishing Texas as America’s Film Capital.

February 2, 2025

State of the State Address: Governor Greg Abbott commends a student whose education in welding led to a job on Taylor Sheridan’s TV series, Yellowstone.

March 11, 2025

SB22 is filed the night before The Texas Film Experience at the Capitol.

March 11, 2025

SB22 is filed the night before The Texas Film Experience at the Capitol.

March 12, 2025

Lobbying group Media for Texas hosts The Texas Film Experience on the grounds of the Capitol that highlights the breadth of work and skills of those working in the Texas media industries.

March 31, 2025

The Senate Finance Committee holds a hearing on SB22. Witnesses speaking in favor include actors Matthew McConaughey and Woody Harrelson, producer of The Chosen Chad Gunderson, and Fort Worth Mayor Mattie Parker. The bill passes and is sent to the Senate floor.

April 16, 2025

SB22 is brought to the Senate floor, with an amendment to introduce a 2.5% uplift for faith-based media. The bill passes with 23 Yeas and 8 Nays.

April 28, 2025

The House Committee on Culture, Recreation, and Tourism hears testimony. Witnesses for the bill again include Matthew McConaughey and Woody Harrelson, along with leaders in faith-based media, and the president of Texas Hotel and Lodging Association.

April 28, 2025

The House Committee on Culture, Recreation, and Tourism passes HB 4568 (the identical House version of SB22).

May 25, 2025

SB22/ HB4568 passes the Texas Legislature

HB4568 is heard on the House floor. Three amendments are approved, bringing down the proposed allocation of $500 million to $300 million, adding an uplift of 2.5% for projects featuring a Texas historic site, and introducing an uplift of 2.5% for productions working with higher education to improve workforce development.

June 22, 2025 at 11:31PM

Half an hour before the session deadline, SB22/HB4568 is filed without signature by Governor Abbott, becoming law. The new law now moves to the Texas Film Commission for implementation.

Taylor Sheridan sits at table giving testimony in the Texas State Legislature

Taylor Sheridan gives testimony to the Texas Senate Finance Committee on October 9, 2024.

Taylor Sheridan gives testimony to the Texas Senate Finance Committee on October 9, 2024.

Actors Matthew McConaughey and Woody Harrelson sit at desk in suits with microphones to address the Texas legislature.

Matthew McConaughey and Woody Harrelson give testimony to the Texas House Finance Committee

Matthew McConaughey and Woody Harrelson give testimony to the Texas House Finance Committee

Fred Poston, Executive Director of the Texas Media Production Alliance (TXMPA), speaking on one of the stops of their spring 2025 roadshow, a tour around Texas to inform local communities about the benefits of the then-pending legislation.

Fred Poston, Executive Director of the Texas Media Production Alliance (TXMPA), speaking on one of the stops of their spring 2025 roadshow, a tour around Texas to inform local communities about the benefits of the then-pending legislation.

logo with Texas in cursive and rays of light. Includes established 1971

Texas Film Commission

Texas Film Commission

A Closer Look

at Texas Media

Incentives and Media Work

Bar graph showing New Mexico has a minimum rate of 25% and a maximum rate of 40%, Louisiana has a minimum rate of 25% and a maximum rate of 40%, Oklahoma has a minimum rate of 20% and a maximum rate of 30%, California has a minimum rate of 20% and a maximum rate of 30% and New York has a minimum rate of 30% and a maximum rate of 50%. A red dotted line across the bars shows Texas has a 31% maximum incentive rate.

Texas Competitor Incentive Rates as of 2025 (see page 20 of the report for additional details)

Texas Competitor Incentive Rates as of 2025 (see page 20 of the report for additional details)

Cale Epps, University of Southern California, compares Texas and Arizona's attempts to "woo" Hollywood production dollars.

A graph of Texas Film grants shows that after 25, the number of film projects receiving grants falls sharply. Fewer independent films get grants and even as the average size of grants goes up. More streamers, and Hollywood studio indies are filming in Texas. Hollywood studio films remained low even after 2015.

Texas Film Grants from 2009-2024. Source: TMIIIP Grant Report 2008-2024

Texas Film Grants from 2009-2024

Ryan David Briggs, The University of Texas at Austin, discusses the evolution of Austin's indie film scene and the organizations that support low-budget, local filmmaking.

Stackable bar graph shows that Austin is the biggest location for filmming in Texas followed by Dallas, then Houston, then Bastrop, then San Antonio. All filming has fallen since 2014.

Top five cities for filming in Texas (2009-2024). Source: 2024 Texas Film Commission

Top five cities for filming in Texas (2009-2024). Source: 2024 Texas Film Commission

Ann Laudick, The University of Texas at Austin, discusses the challenges and opportunities of building crew-depth in Texas.

Line graph from 2008 to 2024 showing the increase in Texas Arts, Design, Entertainment, Sports & Media Occumpations. There was dip in 2020 but by 2023 the number had reached new highs and continued to grow in 2024. Over 140,000 jobs.

Texas Arts, Design, Entertainment, Sports & Media Occupations. Source: Occupational Employment and Wage Statistics (estimated) from the Bureau of Labor Statistics

Texas Arts, Design, Entertainment, Sports & Media Occupations. Source: Occupational Employment and Wage Statistics (estimated) from the Bureau of Labor Statistics

Casey Walker, The University of Texas at Austin, describes the types of filmmaking courses that are increasingly being offered by a varied group of higher-education institutions.

Stackable bar graph showing the top 5 cities for filming in Texas. From most to least number of films are Austin, Dallas, Houston, Bastrop, and San Antonio. Though there are many other cities who did not make the top 5. Filmmaking overall peaked in 2024 with fewer projects since 2015 for all cities.

Top five cities for filming in Texas (2009-2024). Source: 2024 Texas Film Commission

Top five cities for filming in Texas (2009-2024). Source: 2024 Texas Film Commission

Hannah Wold, research report co-lead, highlights how regional film commissions within Texas both collaborate and differentiate geographic areas, infrastructures, and other resources under their purview.

Map showing that most of Texas's film festivals are concentrated in the major metro areas in the center of the state. But there are also festivals on the northern, western, and southern borders

The above map reflects the locations of 78 Texas-based film festivals. Due to the itinerant nature of film festivals, there may be more that are not accounted for here.

The above map reflects the locations of 78 Texas-based film festivals. Due to the itinerant nature of film festivals, there may be more that are not accounted for here.

Hannah Wold also details Texas' thriving festival scene. There are at least 78 festivals happening every year!

A Closer Look

at Texas Media

How "Texas" Shapes Local Media Industries

An old two-story house with the sign Star Film Ranch on the second floor balcony. Five horses and cowboys stand outside as well as other cast members for a film.

Source: Star Film Ranch House. Francis Ford Collection

Source: Star Film Ranch House. Francis Ford Collection

Kathy Fuller-Seeley, The University of Texas at Austin, looks back at San Antonio's silent era film productions and Gaston Méliès' Star Film Company (1910-1911).

A graph of TMIIIP awardees in film and television and how their in-state spending has increased even as the number of awardees has decreased since 2015. This reflects TMIIIP funding bigger projects with more money rather than a lot of small project.

Texas Film Grants from 2009-2024

Tricia Jenkins and Kimberly A. Owczarski, Texas Christian University, discuss how production growth in the Fort Worth area are expanding the local economy.

graphs showing a steep drop in commercial projects in Texas following 2014. A high of 127 in 2011 to just 8 in 2023 and again in 2024.

Advertisements are classified as commercial projects by TMIIIP 2009-2024: Source: TMIIIP Grant Report 2008-2009.

Advertisements are classified as commercial projects by TMIIIP 2009-2024: Source: TMIIIP Grant Report 2008-2009.

Alex Remington, The University of Texas at Austin, describes how luxury retailer Neiman Marcus historically shaped the national image of Dallas and drove spectacular media production in advertising, film, and television.

Peter Arne Johnson, University of Miami, discusses how the state of Texas, through its venture-capital interests, helped develop Austin's "Silicon Hills" into a thriving tech hub. With the convergence of media and tech, Silicon Hill's development suggests possible paths for the future of production in Texas.

Timeline that shows Dimond Sports Group launching Bally Sports Southwest in 2021, Diamond Sports Group filing chapter 11 bankruptcy in 2023. The Dallas Mavericks launching MavsTV in 2024 and later that year the Dallas Stars launching Victory plus. In 2025, the Texas Rangers announced a deal with Victory plus for streaming.

Timeline of the rise of regional sports streaming services in Texas

Timeline of the rise of regional sports streaming services in Texas

Yenny Kang, The University of Texas at Austin, describes how Texas sports franchises both have increasingly vertically integrated to become media producers and are investing in new regional sports streaming services.

Man with glasses and lanyard sits with his legs crossed in a chair on stage.

Jordan Levin on a panel at the Texas Media and Entertainment Industries Symposium in 2024.

Jordan Levin on a panel at the Texas Media and Entertainment Industries Symposium in 2024.

Industry professional and instructor Jordan Levin reflects on how the Texas media industries have changed from his time as a student in the 1980s, through his work as a media executive in Hollywood in the 1990s through the late 2010s, and concludes by offering advice at the beginning of this new era for film incentives.

Special Thanks

This report would not have been possible to produce without support from the leadership and staff of the Radio-Television-Film Department and Moody College of Communication, as well as donors to the Center for Entertainment and Media Industries.